Paulo Andrade
Director General
View from the Top

Adapting to Expand

Thu, 09/01/2016 - 20:51

Q: How likely is the company to reach a 35 percent market share, after hitting your target of 21 percent last year?

A: Polomex’ directors have developed a five-year plan to reach a 35 percent market share. In 2016 we will keep developing our products to fit different chassis, with the goal of strengthening our sales structure. We have established offices in Toluca and continue to invest in industrial development so we can maximize our production capacity and minimize lead time.

Last year was a transition year in which Polomex achieved its target of 21 percent market share within budget and according to plan. We now have a flexible business model and work with other chassis companies besides Mercedes Benz. This allows us to be more approachable to clients. We spent 2015 focused on fitting our products and developing processes for this new business model.

Q: What challenges has the company seen in the heavy vehicle market, considering the current exchange rates?

A: The uncertain exchange rate is one of the main challenges we face. As a manufacturer, we hope this situation stabilizes so our credibility is not hurt and clients feel secure buying our products. The political climate after state elections that resulted in the reorganization of transportation systems in major cities in Mexico has created uncertainty. This translates into challenges in the heavy vehicle market. Another hurdle we have faced is the inventory carried from 2015 in our distribution network. This has forced dealers to focus their efforts on selling these units instead of more current vehicles.

Client diversification created more competition but Polomex is prepared to face this challenge with our extensive portfolio and the customization of our products.

It has provided us with the possibility of market growth. We tend to market needs and clients by offering greater opportunities to customize the chassis and body of buses according to the needs of our clients.

Q: How relevant is the aftersales segment to Polomex?

A: The aftersales segment is an increasing presence in the market through technical assistance and the availability of spare parts for all of our products. We are working on increasing our proximity to our clients so they can get to know our new business plan and learn about our services. We are also implementing a new engineering structure to make maintaining and repairing our buses easy for clients.

Our plan is to continue training our distribution and authorized service network as well as our client base to ensure the best operation of equipment. This permits clients to know our products and learn to give the best service possible under the established premises of our projects.

Q: What are the company’s objectives for production and sales in 2016?

A: We have planned the production and sales of 1,800 units for this year, which represents 22-23 percent of the market. This has become a difficult goal as the first quarter of 2016 was extremely slow. Mexico has been facing a recession that has affected our industry. The forecast for the second half, in contrast, expects a growing market for our segment.

Marcopolo Mexico offers the greatest portfolio variety in Mexico, from a double-decker to a midibus for city and coach segments. Because of our flexible business model, we have given all our products a facelift, from the Torino and G7 to models like the Boxer. The change of design relates to a depersonalization from Daimler’s style, working Marcopolo’s identity and unique image into our buses. This ample portfolio and refreshed image give us an advantage over our competitors. We are ready to implement BRT in Mexico with articulated units and low entry.